From the Tax Law Offices of David W. Klasing - The Anti-Money Laundering Act of 2020 Allows Subpoenas of Foreign Banks that Have U.S. Account Holders

IRVINE, Calif., March 31, 2021 /PRNewswire/ -- Money laundering using foreign corporations has long been a problem that the United States has wanted to eliminate. With the passing of the Anti-Money Laundering (AML) Act of 2020, the United States has taken a big step forward in combatting crimes committed using foreign banks and entities. The National Defense Authorization Act (NDAA) of 2021 is an annual bill that is mainly used to set a budget for the military and the defense of the United States. In the most recent iteration of the NDAA, the anti-money laundering provisions have increased the level of authority that the U.S. has over foreign banks and their U.S. account holders. The AML Act of 2020 allows the government to issue a subpoena for foreign bank records that have an account in the United States or any other account that is opened at the foreign bank provided that one of the following requirements are met:

• The account in question is the subject of an investigation for being utilized to commit a crime in the United States.
• The account holder has violated the Bank Secrecy Act (BSA) of 1970 reporting regulations.
• A civil forfeiture action has been initiated regarding the foreign account.
• The account, bank, or transactions made in the account have been identified as a money-laundering issue.

Foreign banks will now be held accountable for the actions committed by clients engaged in illegal activities in a U.S. account or a foreign account.

To fully understand your exposure for undisclosed foreign financial accounts and income generating assets and business entities, and how to get back into compliance without facing criminal prosecution, you should speak with a dually licensed California Tax Attorney and CPA today. At the Tax Law Offices of David W. Klasing, we are experienced and skilled in helping our clients navigate complex international tax and information reporting issues that could affect them or their business.

To talk to David W. Klasing about your case, call us at (800) 681-1295 for a confidential consultation on schedule online HERE. We represent clients nationally over IRS issues and in California for state issues.

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Public Contact:
Dave Klasing Esq.
M.S.-Tax CPA,
[email protected]

SOURCE Tax Law Offices of David W. Klasing, PC

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